Examine Figure 37.1. What is the number of students educated in a market that has a subsidy equal to the external benefit? 
Figure 37.1
A. S*
B. S'
C. All who have any desire for it
D. The answer is unknown from this diagram.
Answer: B
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Explain why proponents of supply-side effects of tax rate variations who also believe that tax-rate changes influence aggregate demand might claim that cuts in marginal income tax rates can potentially push up real Gross Domestic Product (GDP)
without generating inflation.
Which is the most important category of Fed assets?
A) securities B) discount loans C) gold and SDR certificates D) cash items in the process of collection
Assuming a competitive labor market, the marginal revenue product of labor: a. is the ratio of the output price and the extra output produced by an additional unit of labor. b. is always equal to one
c. is used to calculate the cost of labor to a firm. d. is equal to the value of the marginal physical product of labor.
Which is true about M1?
a. it is the sum of US coins and currency b. it is the sum of US coins and currency, and checking accounts c. it is the sum of US coins and currency, checking and savings accounts d. it is the sum of US coins and currency, checking accounts, savings accounts, and large CDs